(Alliance News) - IGas Energy PLC on Wednesday said it was on track to meet full year expectations after beginning a production drive.
The London-based onshore energy company said it is on track to deliver its full year production forecast of 1,900 to 1,950 barrels of oil equivalent per day.
IGas said it initiated a production drive in October to ensure that wells, plant and equipment had the maximum uptime. The company moved from three fully operational rigs to five, returned 18 offline wells to production, and converted two wells from jet pump to beam pump.
Operating costs were lowered, and water injection capacity was significantly increased across IGas's asset base, the company said.
A planning application for the company's Glentworth project has also been submitted to Lincolnshire County Council, with the first phase of the project offering the potential to add around 200 barrels of oil per day and 1.0 million stock tank barrels of proven and probable reserves.
IGas said its joint application with SSE PLC to the Green Heat Network Fund to supply renewable heat to five NHS trusts is under consideration, with a decision expected in early 2023. If successful, the company said its application could result in five long term renewable heat supply contracts.
Interim Executive Chair Chris Hopkinson said: "We are focused on putting cash generated during high commodity prices to work into maximising recovery from our existing assets and developing near term incremental production opportunities as well as growing our nascent geothermal business into a material enterprise."
IGas shares were 6.9% higher trading at 17.00 pence per share at midday on Wednesday in London.
By Harvey Dorset, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2022 Alliance News Ltd. All Rights Reserved.
